Financing for Development
Achieving global justice, mitigating climate change effects, building peaceful and safe societies, and other global development objectives requires a continuous engagement as well as funding. While leaders of the world agreed on ambitious and universal sustainable development goals in 2015, finding the finances to reach these goals remains a challenge.
Financing for development covers many different public and private, domestic and international financial flows, among which domestic fiscal revenues, public development aid, remittances, foreign direct investment and external debt. On one hand, the domestic resources, such as taxation, are by far the largest source of revenue for financing economic and social development although they are not usually used for social-justice. On the other hand, public sources of financing (including aid, and government borrowing) tend to be more predictable and stable and they also have the potential to be more used for social-justice by targeting the poorest and most vulnerable people.
In this debate, CONCORD actively campaigns to hold EU leaders accountable for their commitments to dedicate 0,7% of their Gross National Income to development assistance and to use this aid in genuine, poverty-focused and effective ways. We also advocate for the mobilization of other financing sources, including through promoting tax justice, combating illicit financial flows including tax dodging by transnational companies, improving the international financial cooperation and the global economic governance, and ensuring that private sector financial contributions focus on sustainability and human rights criteria.
Underpinning all this, CONCORD promotes strong, democratic ownership by the people in developing countries over their own development and financing policies.
CONCORD focuses on an evidence-based policy, including the writing of the annual AidWatch report. We actively engage in dialogues with leaders in EU institutions, member states and international organisations, also as part of broader coalitions of the civil society, to push for necessary policy changes and a more favourable policy environment.
The Change we want to see
- People’s ownership in the Global South on use of finances: We want the EU and Member States to increasingly respect the entitlement of citizens of the Global South to define their and their country’s sustainable development plans and the resources to finance them.
- Tax Justice: We support and amplify initiatives to promote tax justice.
- Quantity and Quality of the Official Development Assistance budget (ODA): We want the ODA to be genuine and innovative, and remain at the core of political debates to hold the EU and Member States accountable.
- Gender Equality: We want the programming and review of the EU financial instruments to lead to a bigger commitment towards gender equality.
- Framing the private sector’s contribution: We want the EU policies and practice to put the private sector’s contributions to development finance increasingly in the right(s) framework.
The Multiannual Financial Framework (MFF) determines the architecture of the EU’s budget. As the current MFF is coming to an end in 2020, this episode of our “Talking Development Podcast” reveals the important elements that should be put into consideration for the new MFF which will last for seven years (2021-2027). Stay tuned as we explain why you should care about the new EU budget and what is at stake for European NGOs.
Financing development projects might seem like a complex and technical topic while being vital to sustain the future of people and planet. In this podcast, Jeroen Kwakkenbos from Oxfam International EU Office, guides us through the new trends in aid and the more recent mechanisms put in place to finance development objectives in innovative ways.
For the second consecutive year, EU aid spending has decreased. Despite the well-received 25% reduction in inflated aid, EU aid is still decreasing after discounting these components. This means that, at the current rate of growth, the EU will only meet the 0.7% ODA/GNI target in 2061, as revealed by the CONCORD AidWatch 2019 Report.